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Kaveri Pharma Ltd has unspent CSR money of Rs 2 crore for an ongoing project that meets the prescribed conditions. The financial year ended on 31 March 2026. Under section 135(6), which course is correct?

The company must transfer the amount to a special Unspent CSR Account in a scheduled bank within thirty days of the year end, here by 30 April 2026, and spend it within three financial years of the transfer, failing which it moves to a Schedule VII Fund.

  1. ATransfer to the Unspent CSR Account by 30 April 2026 and spend it within three financial years from the date of transferCorrect
  2. BTransfer to a Schedule VII Fund by 30 September 2026
  3. CTransfer to the Unspent CSR Account by 30 September 2026 and spend within one year
  4. DRetain it in the company's current account and spend whenever the project completes

Explanation

For an ongoing project, the unspent amount goes to the Unspent CSR Account in a scheduled bank within thirty days of year end, i.e. by 30 April 2026. It must be spent within three financial years from the transfer date, failing which it goes to a Schedule VII Fund. The six-month Fund route is for non-ongoing cases.

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